Brazilian Parliament approves regulation of the crypto industry

The Chamber of Deputies of Brazil has approved a bill regulating the crypto industry, according to CoinDesk.

The Senate approved the measure back in April, but since June it has sat in the lower house of Congress. The bill now awaits the president’s signature.

The bill, authored by Deputy Aureo Ribeiro, creates a new crime — fraud involving the use of digital currencies, punishable by two to six years in prison in addition to a fine.

If enacted, crypto firms would be required to obtain licenses as ‘providers of virtual asset services’. A transition period of 180 days is allowed to adapt to the new rules.

Regulation of crypto assets classified as securities will be handled by the Brazilian Securities and Exchange Commission. Other cryptocurrencies will fall under the supervision of another agency to be chosen by the executive branch. It is expected that the Central Bank will take on this role.

Earlier, the head of Brazil’s central bank advocated for the creation of a regulatory framework for the crypto industry in the country.

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